well, I'm far from being an expert, but it seems to me that PC users will always want games, but here's the problem. I can play a game that game out 7-8 years ago on my current PC. And I will. In fact, I've just almost finished all the Starcraft and Starcraft: Broodwar campaigns again. Consoles can't do that on the same machine. Though the gamers may still have their old machines hidden away somewhere. I can play my old games just by slipping in a CD though, I don't have to lug out the old console. So if I want to play a different game, I don't have to go out and buy a brand new game. I can just pop in something that I finished 5 or 6 years ago, it'll be a nice change of pace. Heck, I can even buy games that came out 5 or 6 years ago for cheap on half.com and play a game I've never played before. Plus there are the tweaks and mods. Just modding UT made it re-playable for years and years. And then all the really old games are tweaked to play on modern machines: you can get copies of Bard's Tale and play them on your new PC.
THe problem is there are too many alternatives to buying new games: you don't have to drop as much cash to play a variety of games. While that's an advantage to me, it doesn't help the industry.
Not the final word, obviously, but that's my 2bits